U.S. lawmakers are investigating the 2010 trading of InterMune, Inc. (NASDAQ: ITMN) shares and last year trading in Weight Watchers International, Inc. (NYSE: WTW) by SAC Capital Advisors LP.
According to a person who revealed on a condition of anonymity, U.S. Securities and Exchange Commission together with the Federal Bureau of Investigation are inspecting the trades by $14 billion fund of which Mr. Steven A. Cohen; the Chief Executive Officer of SAC Capital Advisors LP is the owner. The trades which are being inspected are made during the first half of 2010 in Brisbane, California based InterMune, Inc. (NASDAQ: ITMN). Nikej Shah, SAC Capital Advisors LP former portfolio manager had handled some of these transactions.
According to a spokesman Jonathan Gasthalter for the SAC $14 billion, the firm does not know of any probe regarding any trades.
The spokesperson for U.S. Attorney Preet Bharara, U.S. Securities and Exchange Commission and FBI’s office in New York did not comment on this matter.
Trades of InterMune, Inc. (NASDAQ: ITMN)
Data compilation by Bloomberg shows that in the first quarter of 2010, the shares bought by SAC Capital Advisors LP were 1.9 million though not holding any shares in the earlier two quarters. By 2010 second quarter having offloaded almost all shares, SAC Capital Advisors LP had only 10,983 shares.
U.S regulators having given a favorable review on an experimental medicine which was made for a deadly lung disease, the stock of InterMune, Inc. (NASDAQ: ITMN) rallied in the first week of March. However after 2 months, following the rejection of the application for a potential lung treatment for $1 billion a year by the U.S regulators, the stock plunged.
According to trading records, SAC Capital Advisors LP had Weight Watchers International, Inc. (NYSE: WTW) in its portfolio when the stock price almost doubled.
Former SAC Capital Advisors LP fund manager Mathew Martoma was charged with insider trading last month. He had used insider information to earn $276 million on stocks of the drug making companies Elan Corporation, PLC (ADR) (NYSE: ELN) and Wyeth LLC.
SAC Capital Advisors LP Owner stock Sale
According to an SEC complaint, the first time when the owner of SAC Capital Advisors LP was linked to an insider case was when he sold stocks after having spoken to fund manager Mathew Martoma. Though Mr. Steven Cohen has not been charged as of now but still he has identified as ‘Hedge Fund Owner’ in the criminal complaint and as Investment Advisor A.’ in the SEC suit.
End of 2011 first quarter, 2.1 million shares were held by SAC Capital Advisors LP., Where as SAC Capital Advisors LP had held only 7,951 shares in the previous quarter.
In February 2011 following a forecasting of full year earnings beating the estimates of analyst, shares of Weight Watchers International, Inc. (NYSE: WTW) soared.
In the 2011 second quarter the holdings of the hedge fund however decreased to 77,857 shares. The stock had plunged by August first week when the firm’s spending on advertising and technology increased.
The shares of InterMune, Inc. (NASDAQ: ITMN) is down by 1.23% to close at 8.83 USD.
The shares of Weight Watchers International, Inc. (NYSE: WTW) is up by 1.54% to close at 52.25 USD.
The shares of Elan Corporation, PLC (ADR) (NYSE: ELN) is down by 0.71% to close at 9.76 USD.
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